Three Reasons to Prefer Dividends Over Buybacks

The rate of share repurchases is growing at a torrid pace. S&P 500 Index companies bought back a stunning $432 billion in shares in 2006 -- almost 59% of reported earnings and up from 45% in 2005. This is huge.

Furthermore, these repurchases increased earnings about 4%, going a long way to explain the S&P's double-digit growth rates.

So is this a good thing for The Millionaire Zone investors?

Or if big companies have so much cash to throw around, would you be better off if they paid you a dividend instead? ...